ICAS ICAS logo

Quicklinks

  1. About Us

    Find out about who we are and what we do here at ICAS.

  2. Find a CA

    Search our directory of individual CAs and Member organisations by name, location and professional criteria.

  3. CA Magazine

    View the latest issues of the dedicated magazine for ICAS Chartered Accountants.

  4. Contact Us

    Get in touch with ICAS by phone, email or post, with dedicated contacts for Members, Students and firms.

Login
  • Annual renewal
  • About us
  • Contact us
  • Find a CA
  1. About us
    1. Governance
  2. Members
    1. Become a member
    2. Newly qualified
    3. Manage my membership
    4. Benefits of membership
    5. Careers support
    6. Mentoring
    7. CA Wellbeing
    8. More for Members
    9. Area networks
    10. International communities
    11. Get involved
    12. Top Young CAs
    13. Career breaks
    14. ICAS podcast
    15. Newly admitted members 2022
    16. Newly admitted members 2023
  3. CA Students
    1. Student information
    2. Student resources
    3. Learning requirements
    4. Learning updates
    5. Learning blog
    6. Totum Pro | Student discount card
    7. CA Student wellbeing
  4. Become a CA
    1. How to become a CA
    2. Routes to becoming a CA
    3. CA Stories
    4. Find a training agreement
    5. Why become a CA
    6. Qualification information
    7. University exemptions
  5. Employers
    1. Become an Authorised Training Office
    2. Resources for Authorised Training Offices
    3. Professional entry
    4. Apprenticeships
  6. Find a CA
  7. ICAS events
    1. CA Summit
  8. CA magazine
  9. Insight
    1. Finance + Trust
    2. Finance + Technology
    3. Finance + EDI
    4. Finance + Mental Fitness
    5. Finance + Leadership
    6. Finance + Sustainability
  10. Professional resources
    1. Anti-money laundering
    2. Audit and assurance
    3. Brexit
    4. Business and governance
    5. Charities
    6. Coronavirus
    7. Corporate and financial reporting
    8. Cyber security
    9. Ethics
    10. Insolvency
    11. ICAS Research
    12. Pensions
    13. Practice
    14. Public sector
    15. Sustainability
    16. Tax
  11. CPD - professional development
    1. CPD courses and qualifications
    2. CPD news and updates
    3. CPD support and advice
  12. Regulation
    1. Complaints and sanctions
    2. Regulatory authorisations
    3. Guidance and help sheets
    4. Regulatory monitoring
  13. CA jobs
    1. CA jobs partner: Rutherford Cross
    2. Resources for your job search
    3. Advertise with CA jobs
    4. Hays | A Trusted ICAS CA Jobs Partner
    5. Azets | What's your ambition?
  14. Work at ICAS
    1. Business centres
    2. Meet our team
    3. Benefits
    4. Vacancies
    5. Imagine your career at ICAS
  15. Contact us
    1. Technical and regulation queries
    2. ICAS logo request

What a relief! The 2021 National Insurance Contributors Bill

Justine Riccomini explains what is contained in the 2021 National Insurance Contributions Bill.

The NICs Bill was introduced to Parliament on 12 May 2021. The bill contains four important sections, as follows:

Freeports

The NICs Bill introduces a relief from employer NICs in respect of new employments of eligible employees who work at Freeports in Great Britain and Northern Ireland. The new employment must commence between 6 April 2022 or the date upon which a site receives a Freeport designation, if later, and 6 April 2026. Any new employments commencing after 2022 will receive at least 36 months of relief (assuming the employment is not terminated before this).

The exemption will last a maximum of 4 years - until April 2026, and possibly even longer - 9 years – until April 2031, subject to a review in 2026 of the effectiveness of the measure. A zero-rate employer’s NICs band will be introduced on these earnings up to an Upper Secondary Threshold for the first 36 months in Great Britain.

To qualify, the employer must have physical premises within the boundary of the Freeport. A qualifying employee must spend at least 60% of their time working at that particular Freeport premises.

Note that the definition of a GB-based freeport has been provided for in FB 2021.  An NI Freeport definition will be provided later in a subsequent Finance Bill. Further information about Freeports is available here.

NICs relief for employers of veterans

Although this employer’s NICs relief has been available from 6 April 2021, it is not yet on a statutory footing – the NICs Bill 2021 will remedy this. The draft legislation can be found here. The relief will apply for 12 months in respect of any employer who employs a veteran of the armed forces in their first civilian employment since discharge from the regular armed forces. The veteran must have completed at least one day of basic training in the armed forces employment to qualify.

The measure is available from 6 April 2021 to 5 April 2024, although it will be reviewed in 2023 – and the government may decide to extend it depending on the success of the measure. Further information is available here.

NICs relief for self-employed individuals in receipt of Covid Test and Trace self-isolation support payments

Those self-employed persons who receive coronavirus test and trace support payments will receive Classes 2 and 4 NICs relief on them, bringing the self-employed in line with the employed on this issue. The payments of £500 being made across the UK, which fall under the devolved remit, are administered by local authorities. They are being made to qualifying individuals who are unable to work from home and thus suffer financial detriment as a result of not being able to earn a living, due to having been asked to self-isolate. Class 4 NICs is otherwise payable on profits chargeable to income tax under Chapter 2, Part 2 ITTOIA 2005 by way of s.15, Social Security Contributions and Benefits Act 1992, and Class 2 NICs are payable on any profits chargeable to Class 4 NICs.

Employed earners

The NICs relief (both primary and secondary) was extended to employers (and employees) by way of SIs 2020/1065 and 2020/1532. Claims can be made by employers from April 2022, with retrospective claims for 2021/22 through the Real Time Information system in line with transitional provisions.

NICs avoidance powers widened

The Bill introduces new proposals to widen the existing powers for tackling promoters/enablers of NICs avoidance schemes. These powers mirror the DOTAS provisions in FB 2021, as enabled by section 132A of Social Security Administration Act 1992 which allows the DOTAS legislation to be replicated for NICs.

Scottish social care workers first to receive £500 “thank you“ bonus

By Justine Riccomini, Head of Taxation (Scottish Taxes, Employment and ICAS Tax Community)

8 February 2021

Treasury Committee report: 'Tax after Coronavirus'

By Charlotte Barbour, Director of Taxation

8 March 2021

2-23-marsh 2-23-marsh
ICAS logo

Footer links

  • Contact us
  • Terms and conditions
  • Modern slavery statement
  • Privacy notice
  • CA magazine

Connect with ICAS

  • Facebook (opens new window) Facebook Icon
  • Twitter (opens new window) Twitter Icon
  • LinkedIn (opens new window) LinkedIn Icon
  • Instagram (opens new window) Instagram Icon

ICAS is a member of the following bodies

  • Consultative Committee of Accountancy Bodies (opens new window) Consultative Committee of Accountancy Bodies logo
  • Chartered Accountants Worldwide (opens new window) Chartered Accountants Worldwide logo
  • Global Accounting Alliance (opens new window) Global Accounting Alliance
  • International Federation of Accountants (opens new window) IFAC
  • Access Accountancy (opens new window) Access Acountancy

Charities

  • ICAS Foundation (opens new window) ICAS Foundation
  • SCABA (opens new window) scaba

Accreditations

  • ISO 9001 - RGB (opens new window)
© ICAS 2022

The mark and designation “CA” is a registered trade mark of The Institute of Chartered Accountants of Scotland (ICAS), and is available for use in the UK and EU only to members of ICAS. If you are not a member of ICAS, you should not use the “CA” mark and designation in the UK or EU in relation to accountancy, tax or insolvency services. The mark and designation “Chartered Accountant” is a registered trade mark of ICAS, the Institute of Chartered Accountants of England and Wales and Chartered Accountants Ireland. If you are not a member of one of these organisations, you should not use the “Chartered Accountant” mark and designation in the UK or EU in relation to these services. Further restrictions on the use of these marks also apply where you are a member.

ICAS logo

Our cookie policy

ICAS.com uses cookies which are essential for our website to work. We would also like to use analytical cookies to help us improve our website and your user experience. Any data collected is anonymised. Please have a look at the further information in our cookie policy and confirm if you are happy for us to use analytical cookies: